iPhone manufacturer to move major production facilities
June 26, 2008 by Dan Butterfield
Jun. 26, 2008 (Source: China Knowledge) – Foxconn International Holdings Ltd, a Shenzhen-based handset producer, is planning to move its major production facilities to low-cost regions such as Taiyuan and
Langfang regions, sources reported. The sources said Foxconn International made the decision mainly because of the surging labor cost in Shenzhen and the market turbulence caused by Apple’s Apple’s low-price iPhone strategy.
He said the company’s headquarter is making some changes in the R&D set-up, and is maintaining its existing output capacity. However, it will concentrate its major production in northern areas of China, said the insider, adding that new plants in Taiyuan and Langfang regions are expected to start production in the third quarter of this year. These two plants’ capacity will be expanded in due course.
Foxconn International will increase budget for intelligence-oriented handsets R&D by 50% and add more R&D personnel in the future, as the outlook for intelligence-oriented handsets market is favorable, said the insider. Since Foxconn has a good relationship with global giants such as Nokia Corp, it expects to more business opportunities from emerging mobile phone operators in mainland China.
In addition, Foxconn is also launching production trials in its new plant in Vietnam. It plans to set up new factories in low-cost markets such as Hungary and India. A new plant in Hungary is scheduled to start operation in Aug. this year. The overall production capacity of the company is estimated to rise 20% to 30% in 2009, sources said. …. [The rest of this article can only be viewed by China Knowledge Premium Members.]
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